Page 4 - SPLS 1 04 Task 1 (e book)

The best way to understand the differences between a non-profit sport structure and for-profit sport
structure is to take a look at the comparisons between the two in the form of a table.

SPORT STRUCTURES

For-Profit Non-Profit
Has a company owner Generally owned by the public
Always generates money for the owner of the These non-profit organisations serve the public
business
Making a sizable profit is their view of success Meeting the needs of the public or local
communities is always seen as their success
Members or workers are usually paid People who work for them make a small amount
of income
People who work for them can make a good Only a select few get paid the rest of the workers
income are generally volunteers
Any money that is made extra which would Any money that gets made or earned over what
usually be used for expenses is kept as profit and would be used for expenses gets spent on any of
disturbed among the owners the publics need
This type of structure will always have to pay These structures can often be excused from
taxes paying taxes

There are a lot of advantages and pros for a non-profit sport structure or organisation. Nonprofits are
often eligible for many benefits that don not apply for those sport structures that are for-profit. Here
are few of the advantages that you may come across for a non-profit sport structure. Having a tax-
exempt status is probably one of the best advantages, this allows for these organisations to make use
of all their financial earnings an put it all towards accomplishing their goals. Another big plus is that
the founders are kept separate from these organisations, meaning that if there are any lawsuits, fines,
debts or any legal matter that the organisation might find itself in, the founders are not held
accountable. With Advantages also comes challenges and of the biggest challenges a non-profit sport
structure can face is lack of funds. The major source funds are through donations, and the only way
these organisations can get donations is to ask people to donate any bit of cash or assets that they
don’t use, which isn’t always the easiest task. Another challenge is low pay, a lot of work goes into
these structures but unfortunately any capital that is made has go back into the company.

There’s an obvious advantage in for-profit sport structures and organisations and that’s the high
possibility of making money. If you own a for-profit sport structure or organisation any money that
the company makes is yours to do with what you want. Another plus is ownership and liability,
besides the possibility of making a lot of money you can also be your own boss and not have to answer
to anyone. There are however a few challenges that these for-profit structures can face. No body likes
to pay tax but this one of the disadvantages that come with owning a for-profit structure and wanting
to male a lot of money.

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